Old Mutual Swung to 1st Half Net Loss; Suspends Dividend
September 01 2020 - 2:01AM
Dow Jones News
By Ian Walker
Old Mutual Ltd. on Tuesday reported a swing to net loss for the
first half of the year and suspended its dividend payout due to the
coronavirus pandemic, but said its liquidity levels remain positive
and solvency ratio within its targeted range.
The South Africa-based, financial-services company added that it
has withdrawn its previous guidance targets and replaced them with
new ones to reflect the pressure on revenues from the pandemic. The
group expects to deliver 750 million South African Rand ($44.3
million) of pretax run rate savings by the end of 2022, it
said.
Net loss for the half year was ZAR5.62 billion compared with a
profit of ZAR5.82 billion. Headline earnings--one of the company's
preferred metrics which strips out exceptional and other one-off
items--was ZAR4.22 billion compared with ZAR5.85 billion for the
first half of 2019.
The group's solvency ratio--a measure of financial
stability--was 182% compared with 189%.
Old Mutual said it will review its full-year dividend payout
when there's "more clarity on the shape of possible economic
recovery scenarios."
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
September 01, 2020 01:46 ET (05:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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